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Case Study (Trap-Ease America)
Case Study (Trap-Ease America)
Principles of Marketing
14 E
MKT 202 NHSU
manufacturing cost for the Trap-Ease, Martha knew that the investor group
including freight and packaging costs, was believed that Trap-Ease America had a
about 31 cents per unit. The company paid “once-in-a-lifetime chance” with its
an additional 8.2 cents per unit in royalty innovative mousetrap, and she sensed the
fees. Martha priced the traps to retailers at group’s impatience with the company’s
99 cents per unit (two units to a package) progress so far. She had budgeted
and estimated that, after sales and volume approximately $250,000 in administrative
discounts, Trap-Ease would produce net and fixed costs for the first year (not
revenue from retailers of 75 cents per unit. including marketing costs). To keep the
investors happy, the company needed to
To promote the product, Martha had
sell enough traps to cover those costs and
budgeted approximately $60,000 for the first
make a reasonable profit.
year. She planned to use $50,000 of this
amount for travel costs to visit trade shows Questions for Discussion
and to make sales calls on retailers. She
1. Martha and the Trap-Ease America
planned to use the remaining $10,000 for
investors believe they face a once-in-a-
advertising. So far, however, because the
lifetime opportunity. What information do
mousetrap had generated so much
they need to evaluate this opportunity? How
publicity, she had not felt that she needed to
do you think the group would write its
do much advertising. Still, she had placed
mission statement? How would you write it?
advertising in Good Housekeeping (after all,
the trap had earned the Good 2. Has Martha identified the best target
Housekeeping Seal of Approval) and in market for Trap-Ease? What other market
other “home and shelter” magazines. segments might the firm target?
Martha was the company’s only
salesperson, but she intended to hire more 3. How has the company positioned the
salespeople soon. Trap-Ease for the chosen target market?
Could it position the product in other ways?
Martha had initially forecasted Trap-Ease’s
first-year sales at five million units. Through 4. Describe the current marketing mix for
April, however, the company had only sold Trap-Ease. Do you see any problems with
several hundred thousand units. Martha this mix?
wondered if most new products got off to 5. Who is Trap-Ease America’s
such a slow start, or if she was doing competition?
something wrong. She had detected some
problems, although none seemed overly
serious. For one, there had not been
enough repeat buying. For another, she had
noted that many of the retailers upon whom
she called kept their sample mousetraps on
their desks as conversation pieces—she
wanted the traps to be used and
demonstrated. Martha wondered if
consumers were also buying the traps as
novelties rather than as solutions to their
mouse problems.
Principles of Marketing
14 E